3-1 Looking back on 4 March 2008 when the interest rate was setat 7.25% by RBA (Reserve Bank Australia), however since then RBAgradually reduced the interest rate to its lowest 1% on 3 July2019. Present an overview on the expectations or motivations behindsuch interest rate cut by RBA? (summary)
[Note: In the early 1990s the interest rate was 17.5%, you don’tneed to go back such distant past, your analysis should focusbetween 2008 to 2019]
3-2 Identify the possible impact of interest rate cut oninvestments in the capital market in Australia.
[Note: Here you can investigate the differences in impactbetween debt instruments and equity instruments in the capitalmarket, you can use table, chart, graph wherever you would find itappropriate]
3-3 Identify the possible impact of interest rate cut on theReal Estate market in Australia.
[Note: You can analyse the differences in impact between foreignsourced investment and local sourced investment in the Real EstateMarket, you can use table, chart, graph wherever you would find itappropriate]
3-4 There are four countries (Japan, Sweden, Denmark andSwitzerland) have negative interest rates. What could be theexpectations/ motivations to drop interest rate below zero?
Could you please give me a quick summary of the solution to eachquestion so that I may expand on this. It is for my currentjob.
